According to Cointelegraph, high-risk DeFi loans surged after the US presidential election. IntoTheBlock data shows that such loans are collateralized by volatile assets close to the liquidation threshold.
Alexander Sudeykin, co-founder of Evaa Protocol, said that although large-scale liquidations may affect the crypto market, it is unlikely to cause a price crash. The maturity of the DeFi industry has increased its resilience to market fluctuations.
Michael Egorov, founder of Curve Finance, once had more than $100 million in loans liquidated due to market volatility caused by a hacker attack.
As of press time, high-risk loans on the Benqi protocol are close to $5 million, and total debt exceeds $115 million.